The Greek credit crisis continues to bog down the euro as investors abandon the currency in favor of the US dollar. Latest estimates have Greece’s debt in the range of €300 billion ($US 419 billion). This prompted European Commission President Jose Manuel Barroso to call for European Union governments to show greater restraint with respect to spending and said that governments need to be more “disciplined” with public finances.
The euro fell to a 10-month low of $1.3436 in trading this morning, while the British Pound recorded its sixth straight day of losses falling to $1.4936 as Britain struggles with its own credit issues.
The big question is what will the EU offer by way of a bail-out package for Greece. According to German Chancellor Angela Merkel however, a bail-out for Greece – and by extension other countries facing their own debt problems including Italy, Spain, and Portugal – is far from a fait accompli. In a direct statement issued on Sunday, the German Chancellor said essentially, Greece had to solve its own problems.
“We have a contract which rules out the possibility of bailing out other nations,” said Ms Merkel.
Source: BBC New
